A Triangle Within A Triangle – A Fractal
Mathematically speaking a fractal is basically something which, when you look a small part of it, it resembles the whole. A bit like a triangle, made up of triangles…
Here’s the $Gold chart over the last year or two…
And here it is over the last 17 years…
So we have two bullish symmetrical triangles (higher lows and lower highs), one within the other…
If we drop out of this to the downside, I don’t even want to contemplate where it might end up. That scenario seems unlikely to me though, when you consider all the uncertainty and instability in the world right now, coupled with physical gold demand that paper price will surely struggle to control. What if we’re on the cusp of a ‘repricing, event similar to what happened in the late 1970’s…
Those triangles are closing up, so we will all know the answer before too long.
Brilliant stuff there NS.
Your thoughts are also supported by my charts in this post I would say:
https://goldtadise.com/?p=391935
Cheers Graddhy. I think we’re on the same page here.I always take all the counter-arguments into account (as I’m sure you do). There’s always the chance it does the opposite of what we’re expecting. A drop to somewhere around $1150-$1180 would be ok – we’re bouncing about in an ever tightening apex.
We all seem to be seeing the same thing. The question is- when does it break out?
The charts I look at show the triangle not coming to the trendline for another 3yr. Yet the charts you show look like we’re very close to the breakout point.
I suppose we’re looking at different contracts.
As for fundamentals – considering demand, production levels, cost of production, dollar index levels, and then the big one – sovereign debt. I can’t see price going below $1,000 USD. But I guess crazier things have happened?
I’ve just had another look at the timings and posted a couple of charts Nick. It varies a bit depending on your settings and how you draw the lines.
Till then all one can do is trade the minute charts–one day at a time…great work Northstar…
Cheers Eagle. Patience is a virtue…